FEATURES OF VALUE ADDED TAX AND PROSPECTS FOR REFORMS IN KYRGYZSTAN

Abstract

Together with joining the Eurasian Economic Union, the risks associated with the harmonization of taxes become an urgent problem. VAT can be used as an effective tool in the perspective regulation of social and economic consequences of these risks. The tax policy carried out without taking into account the features of the VAT led to negative results in previous years. The purpose of this paper is to consider the risks and opportunities for further reforms by determining the relative merits and disadvantages of VAT in relation to other taxes. The results of this study revealed that VAT in Kyrgyzstan was mainly used as a tool for solving short- and medium-term financial problems related to budget deficit, instead of long-term social and economic problems